Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTPeace LongeThu, August 6, 2026 at 11:33 PM GMT+2 5 min readWall Street rarely puts a triple-digit return forecast on a company with a long history of being unprofitable. Goldman Sachs just did exactly that.The bank named U.K. fuel cell developer Ceres Power (CWR) as a top European pick for August, forecasting a 168% gain over the next 12 months. That would nearly triple the money of anyone buying today.Ceres shares fell more than 31% in July as investors pulled back from artificial intelligence spending. Goldman sees that drop as a buying window rather than a warning.For investors, Goldman thinks Ceres will help solve one of AI's biggest problems: where the electricity comes from. Whether that outlook holds depends on partners, timelines, and cash the company does not yet have.Why Goldman Sachs sees 168% upside in Ceres Power stockGoldman analyst Michele Della Vigna reiterated his Buy rating on Ceres with a 930p price target on July 4, according to The Globe and Mail. Ceres closed around 383p on Aug. 5, which is where that 168% figure comes from.The stock has been volatile all year. It trades up more than 168% year to date, yet it sits well below its 52-week high of 872.50p after the July sell-off.More AI Power Stocks:Morgan Stanley says Bloom can withstand an Oracle project delayAnother AI power darling just hit a 52-week lowMorgan Stanley strongly resets GE Vernova stock targetDella Vigna was among the first major analysts to connect fuel cells to AI power demand, and he has raised his Ceres target repeatedly through 2026.Goldman also placed Ceres near the top of its August European Conviction List, the bank's roster of highest-confidence Buy calls, CNBC reported. Of all the names on that list, Ceres carries the largest forecasted gain.What Ceres Power actually does, and why AI needs itCeres does not make electricity. It designs solid oxide fuel cell technology and licenses it to manufacturers that build the actual systems.A solid oxide fuel cell converts fuel such as natural gas or hydrogen into electricity through a chemical reaction rather than combustion. That means power generated on-site, quickly, without waiting years for a grid connection.That speed is the whole point for AI. Data centers running AI models consume enormous amounts of electricity, and utilities cannot build new grid capacity fast enough. Goldman expects AI to push global data center power demand up by about 160% by 2030, Investing.com reported.Ceres earns money through licensing and royalties instead of factories, an approach analysts call "asset-light." Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info